If You Bought Stock Using Dollar Cost Averaging as Listed

question 80

Multiple Choice

If you bought stock using dollar cost averaging as listed here, what was your average cost? $$\begin{array} { l r l } \text { June 15 } & \$ 50 & 1.75 \text { shares } \\\text { July 15 } & \$ 50 & 1.65 \text { shares } \\\text { August 15 } & \$ 50 & 2.00 \text { shares }\end{array}$$

• A) $27.50
• B) $27.78
• C) $27.96
• D) $28.57
• E) $30.00

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Definitions:

Regressive Tax

A tax levied at a rate that decreases as the taxpayer's income increases, placing a heavier burden on low-income individuals.

Federal Inheritance Tax

A tax imposed by the federal government on the transfer of estate from a deceased person to their beneficiaries or heirs.

General Sales Tax

A tax imposed on sales transactions, usually calculated as a percentage of the selling price of goods and services.

Ability-to-pay Philosophy

A principle of taxation that argues taxes should be levied according to a taxpayer's capacity to pay, focusing on fairness in the distribution of tax burdens.